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This is an archive article published on August 21, 2022
Shareholders reappoint Sharma as Paytm MD
Three proxy advisory firms — Stakeholders Empowerment Services (SES), Institutional Investor Advisory Services India (IiAS) and InGovern Research Services — had asked the shareholders to vote against Sharma’s reappointment.
Paytm managing director and chief executive officer Vijay Shekhar Sharma. (Express file photo)
Shareholders of One97 Communications, the parent company of Paytm, have voted to reappoint Vijay Shekhar Sharma as the managing director of the company. Of the total votes polled, 99.67 per cent were in favour of the resolution to reappoint Sharma, according to the scrutiniser report filed by the firm on Sunday.
Institutional investors also supported the resolution with 94.69 per cent of their votes cast.
Three proxy advisory firms — Stakeholders Empowerment Services (SES), Institutional Investor Advisory Services India (IiAS) and InGovern Research Services — had asked the shareholders to vote against Sharma’s reappointment.
Shareholders also cleared Sharma’s remuneration as 94.48 per cent of the votes in favour of the resolution. However, institutional shareholders were largely not in favour as 75.60 per cent of their votes went against the resolution.
“His (Sharma) remuneration is fixed for the next three years without any annual increment, unlike the policy/practice applicable to all other employees of the company,” Paytm said in a statement.
In a letter to shareholders dated April 6, 2022, Sharma had said his ESOPs will vest only when the market cap of Paytm crosses the IPO level on a sustained basis. The Paytm stock closed Friday’s trading session at Rs 771 apiece against the IPO price of Rs 2,150 per share.
According to an update by the company on Saturday, all the seven resolutions mooted by the company were passed.
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The company held its annual general meeting (AGM) last Friday.
One97 Communications (OCL) had sought shareholders’ approvals to reappoint Sharma as the managing director (designated as managing director and CEO) for five years from December 19, 2022, and salary payment as ‘minimum remuneration’ for three years from FY23.
SES had red-flagged Sharma’s reappointment and remuneration, citing “dual position of CMD and excessive remuneration”. FE
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